Ann: Quarterly Activities Report , page-16

These higher operating costs are required in the short term becuase Silver Lake can't become a mid tier gold producer without Mill Upgrades, without increasing the size of the Tailings Dam and especially without removing any waste from ore deposits.

I'm not sure how else you can do it.

They have already expensed 70% of the Christmas Flats project for 20% of contained ounces and have hit 11g/t at Daisy Milano for January. Coupled with the 6000oz's they have stockpiled (like you said that costs money to get there, it doesnt just appear).

Haven't heard any complaints about the 3.5kg/ton.